Consumers think 2015 will be a better year than 2014, especially for selling a home. But the recovery will slow as the rebound effect fades before fundamentals become strong. Key markets to watch are in the Northeast, South, and West.

People are still hot to buy houses and condos in the Seattle metro area, where pending sales last month reached a nearly eight-year high for November. But for now buyers have fewer options because the number of residences on the market is dropping.